FOREX-Dollar droops on strong euro-zone data, Swiss bank rules

Thu Jan 23, 2014 4:23pm EST
 
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* Dollar falls vs Swiss franc after new bank regulations

* Euro helped by short squeeze, German and French surveys

* Canadian dollar falls to 4-1/2-year low; Aussie slumps

By Michael Connor

NEW YORK, Jan 23 (Reuters) - The dollar dropped more than 1 percent against the euro and the Swiss franc on Thursday, hurt by robust euro-zone economic data and tougher bank capital requirements in Switzerland, which suggest a tightening of monetary conditions there.

The dollar touched a three-week low against the Swiss franc and recorded its biggest single-day slump against the Swiss currency since late May.

The dollar index, which measures the greenback against six major currencies, declined nearly 1 percent even as U.S. economic reports showed only a small rise in weekly jobless claims and U.S. existing home sales rose 1 percent in December after three months of declines.

"U.S. data was upstaged by the economic reports coming out of Europe. Jobs and housing fell short of expectations, while the numbers out of the euro zone topped forecasts," said Joe Manimbo, senior market analyst at Western Union Business Solutions.   Continued...